1.
Amount required to invest today is equal to present value of future cash inflows at interest rate. Present value can be calculated with following formula -
P = C1(P/F,i%,1) + C2(P/F,i%,2) + .............. Cn(P/F,i%,n)
Thus, to answer question use following model
P = 100(P/F,5%,1) + 150(P/F,5%,3) + 200(P/F,5%,5)
2.
Computation of Amount required to invest today.
Formula reference -
Thus, Amount required to invest today is 381.52
Will rate! You are planning to withdraw $100 in Year 1, $150 in Year 3, and...
Will rate!!
You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5. How much should you invest today, at an interest rate of 5%? Draw a cash flow diagram for your understanding. You need not submit the cash flow diagram Choose the most appropriate model using functional notations that will answer the question 0 P.200 PF. 5%, 1) +15OPF, 5%, 3) + 100 PF. 5%, 5) 0 p.100(F/P. 5%, 1) + 150E/P.5%,...
You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5, At a 5% interest rate. what is the present worth of these withdrawals?
If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in 8 years. (a) Draw the cash flow diagram from your perspective. (b) How much will you withdraw if you decide to withdraw the entire sum three years after the final deposit and the interest rate is 7%. Show your calculations to get credit. (c) Find the present worth equivalent using the actual cash flows and interest rate of 7%. Show your calculations...
a. Given: Mr. Uga has $100 million to invest. He wants his investment to triple in 6 years. A bank offers him an attractive rate of return that is compounded monthly. Solve for: What interest rate per month should the bank pay Mr. Uga in order for his investment to triple in 6 years? b. Given: Mr. Buga would like to invest a lump sum of money today in order withdraw $10,00 five years from today, $10,000 ten years from...
You plan to make a deposit todeer so that w You can withdraw evere year for zoyears you with drawal at the end of year 1 will be 3000 and will increase by $100 every year, How much do you need to deposit today if the interest rate is 8% compounded annually?
Q3. Consider the following capital market. You want to be able to withdraw 1$150K five years from today in order to pay for your entire graduate school education. (a) If you can earn a 4.29% rate ofreturnper year, how much do you need to invest today? (b) If you can earn 4.21%olyear, how much do you need to invest one year from today? (c) If you can earn 4.2%/year, how much must you deposit at the end of each year...
Question 5 In planning for your retirement, you would like to withdraw $40,000 per year for 19 years. The first withdrawal will occur 20 years from today. Click here to access the TVM Factor Table Calculator Incorrect What amount must you invest today if your return is 10% per year? $ 49734 Round entry to the nearest dollar. Tolerance is +4. Incorrect. What amount must you invest today if your return is 15% per year? $ 15149 Round entry to...
How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 years from now and your deposit will earn 4% interest.
Q3
Q4 Q5
o3. Consider the following capital market. You want to be able to withdraw 1$150K five years earn a 4.2% rate of return per year, how much do you need to invest today? (b) If you can earn 4.2%/year, how much do you need to invest one year from today? (e) If you can earn 4.2%lyear, how much must you deposit at the end of each year for 5 years? (d) How much must you deposit at the...
This year I intend to invest $1,000. For years 2, 3, 4, and 5 I intend to invest $1,300, $1,690, $2,197 and $2856.10 respectively. This amounts to a 30% increase every year in how much I invest. How much is this equivalent to today, if I get 6% interest during all this time? Draw the cash flow diagram for this problem
This year I intend to invest $1,000. For years 2, 3, 4, and 5 I intend to invest $1,300,...